Correcting an Erroneous Write-Off}


The new bookkeeper at Kaolin Construction Company was asked to write off two accounts totalling \(\$ 1,710\) that had been determined to be uncollectible. Accordingly, he debited accounts receivable for \(\$ 1,710\) and credited bad debt expense for the same amount.

\section*{Required:}

1. Determine what was wrong with the bookkeeper's entry, assuming that Kaolin uses the allowance method.

2. Given the entry required to correct his error.

OBJECTIVE 6 Exercise